SIOUX FALLS, S.D. - While net profits and sales were up for the average dealer tracked by Spader Cos. during the nine months ended Sept. 30 - compared to the same period of 2004 - so were their expenses and inventory levels, which raises some concern for the rest of the year.
“With the main selling season behind us, we want to preserve as much of the bottom line as we can,” commented Noel Lais, Spader vice president of operations. “It's time to focus more on margins and expense control. We don't want to lose the advantage we worked so hard to build in the last quarter.”
Net profits were up 9.3 percent during the nine months ended Sept. 30 - compared to the same period of 2004 - the company reported in a recent statement.
Spader Cos. said its average marine dealer earned a net profit of $457,949 or 5.6 percent of sales during the first nine months of the year, compared to $418,914 or 5.8 percent of sales during the same period of 2004.
The training and consulting firm tracks North American boat dealers, both large and small, to compile an average profile, then compares year-over-year trends in a number of different categories.
The unit gross margin percentage was up 0.7 points from 17.9 percent in 2004 to 18.6 percent this year, while total company gross margin percentage was down 0.1 point at 26.8 percent.
Spending was up in terms of dollars and as a percentage of gross margin.
Total dealership sales were up 13 percent from $7,257,984 to $8,199,065 for the average dealer during the nine months ended Sept. 30 - compared to the same period of 2004, reported Spader.
While new boat inventories were up 19.5 percent to $2,767,561, compared to the previous year, new boat sales were also up, according to Spader. They increased 16.3 percent to $5,432,514.
The average dealer's used boat inventories were down 3 percent to $297,698, while used boat sales were down 0.9 percent to $870,259.
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